Nicholas01 wrote:In fact, i would like to buy a HDB rather than rent a house/room in singapore. So my long term plan is to have a PR first, then buy a HDB and move to SG. That's why at this moment I dont reside in SG
It's likely that particular recipe isn't part of
the Singaporean government's plan. Here are a few quotes pulled from their plan published in 2013 (emphasis mine):
"We may have diverse geographical and ethnic backgrounds, but we are all Singaporean because we share certain key values and aspirations, including
meritocracy, a fair and just society, and respect for one another’s culture within
a broad common space where all interact and bond....
"Singapore must continue to develop and upgrade to remain a key node in the network of global cities, a vibrant place where jobs and opportunities are created. A dynamic economy will provide us with more resources and room to pursue inclusive growth strategies to benefit all segments of our society....
"We will continue to welcome immigrants
who can contribute to Singapore, share our values and
integrate into our society....
"Permanent residence is an intermediate status through which foreigners take up citizenship. It is meant for those who have a long-term stake
in Singapore and intend to sink roots here."
Your approach so far and future plan don't seem (to me) consistent with their plan, but maybe other people have different views. In the end, though, the only view that matters when it comes to PR decisions is the Singaporean government's.
I would also point out that the government has recently cut back significantly on HDB benefits offered to PRs. In June, 2012, the government introduced rules that only allow PRs to sublet their HDB units if they have never done so before and then only for a one year period with an extension technically possible but subject to the government's absolute discretion. In August, 2013, the government introduced a three year waiting period for new PRs to be eligible to purchase resale HDB units. HDB Housing Loans and CPF Housing Grants are not available to PRs. A reasonable summary is that PRs (after a significant waiting period) only have access to somewhat less expensive resale units (compared to private units) that started with 99 year lease holdings. Of course there will also be a price differential upon future second resale, assuming there's still enough lease holding period left. In other words, HDB resale units are cheaper to buy which is great when you're buying but not great when you're selling -- you still get what you pay for, or possibly less. If you are capital and credit constrained that's a benefit I suppose. You're tying up less capital, and that means less capital risk, other things being equal, plus you might be able to use some tax-advantaged CPF savings to pay for a bigger percentage. That's something, I guess. But renting still works, too, and it has its advantages (e.g. easier adjustment for school non-placements, nearly zero capital risk). You can
already live in less expensive HDB housing: you can rent it, and those rental rates seem to correlate fairly well with HDB resale unit prices. But you're not already doing that, so it's a puzzle, really.
I wouldn't rate HDB as a
significant benefit for PRs, and my Singaporean friends agree with that general assessment. There's some stamp duty relief on private
property purchases which might be more interesting, actually. The biggest PR benefit, by far, is greater immigration certainty
in Singapore -- but that's not such a huge benefit if you can stay as long as you want just across the causeway.
I'm going to disagree with SMS a bit. It's OK to be "greedy." Rumor has it some Singaporeans are, a bit.
But the government has her needs, too, and she has to win (or at least think she'll win), too. She usually wins.
